Fannie Mae-No Politics (FNMA)

[nats1]

Since common's fair value is north of $150... look for $25 prefs to convert to 1/6th a common and $50 pref at 1/3rd. So for every 6 pref they'll get 1 common at that ratio.

Pref holders should be very concerned how easy it will be to squash them, since they can be easily converted or redeemed - without any input at all for fair value.

The other things prefs should know, even with all their belly aching, if the government and obliterate commons... they'll be in that same boat ... maybe one step up... but still dr owned.

I keep seeing these posts about potential conversion rates - either in the context of the "I hate preferred" or "I hate commons". The above post is typical. My question is - so what? If you are a preferred holder what do you care if you get 100 commons at .$50 a piece or 1/10 of a common at $500 a piece? $50 par is $50 par. Overall, as a holder of commons - and a lot of us hold both - I would be partying if commons went to $500 (if I did not have a heart attack first).

So, regardless, I am at a loss how this squashes anyone - and if redeemed, that would be fine too. And we all know that commons and preferred are in the same boat and will sink or swim together.

Nats